Puzzle as Kenya Banks on USAID's Millions in New Budget Despite Trump Freeze

The Ministry of Treasury, in its 2025/26 Budget Estimates tabled in Parliament, is banking on a Ksh281 million windfall from the Government of the United States to finance its upcoming financial year.

In the estimates, Treasury CS John Mbadi projected that USAID will offer Ksh231 million as an Appropriations-in-Aid (AIA) grant, while Ksh50 million will be extended as a revenue grant.

Of this, a Ksh95.6 million AIA grant has been allocated to the Department of ASALs and Regional Development, while Ksh135 million has been directed to the Department of Wildlife.

The Ksh50 million revenue grant, on the other hand, will be given to the Ministry of Treasury in its efforts to shore up revenue to finance the 2025/26 budget, estimated at Ksh4.24 trillion.

The allocation presents a puzzle, since former US President Donald Trump issued an executive order pausing all international assistance, which led to a stop-work order that halted ongoing projects. The US government removed more than 80 percent of programs under USAID and laid off almost all of its 10,000 employees. The office essentially ceased to exist.

The Kenyan healthcare system was among the most affected by the cut, leading to unemployment, underfunding, and vulnerability in data management systems. Even landlords in posh estates felt the pinch after their tenants, who had recently been fired from USAID, vacated their residences.

Warren Buffet Injection

Part of the budget estimates includes a Ksh3.8 billion injection from the Susan Thompson Buffett Foundation towards the State Department of Medical Services. The foundation is linked to Warren Buffett, the world's sixth-richest person.

The grant will offer crucial relief, covering 18.1% of the department’s Ksh20.93 billion budget for the upcoming fiscal year. This is the first direct funding from the Buffett Foundation to the Kenyan government.

Loan from China and Other Countries

To foot the budget bill, Kenya will also accept a Ksh9.4 billion loan from China, a Ksh3.4 billion loan from Israel, and a Ksh900 million loan from Hungary.